Recording transactions in the accounting system requires knowledge of the important characteristics of the elements of financial statements, such as assets and liabilities. In addition, accountants must understand the inherent uncertainty in accounting measures and distinctions between related accounting concepts that are important in evaluating the effects of transactions on the financial statements.InstructionsIf your school has a subscription to the FASB Codification, go to aaahq.org/asclogin.cfm to log in and provide explanations for the following items. (Provide paragraph citations.) When you have accessed the documents, you can use the search tool in your Internet browser.(a) The three essential characteristics of assets.(b) The three essential characteristics of liabilities.(c) Uncertainty and its effect on financial statements.(d) The difference between realization andrecognition.

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KWW Professional Simulation EI Accounting Information System Time Remaining 3 hours 50 minutes Uneplit Spik Horie Split Vartical Spraadsheet Cakulator Exit Financlal Statements Explanation Rosources Directions Situation Journal Entrlos Nalezny Advertising Agency was founded by Casey Hayward in January 2009. Presented below are both the adjusted and unadjusted trial balances as of December 31, 2012. Nalezny Advertising Agency Trial Balance December 31, 2012 Unadjusted Adjusted Cr. Dr. Cr. Dr. Cash Accounts Receivable Supplies Equipment Accumulated Depreciation-Equipment Accounts Payable Unearned Service Revenue Salaries and Wages Payable Common Stock Retained Earnings Service Revenue Salaries and Wages Expense Depreciation Expense Supplies Expense Rent Expense $11,000 20,000 8,400 60,000 $11,000 21,500 5,000 60,000 $28,000 5,000 7,000 -0- 10,000 4,800 58,600 $35,000 5,000 5,600 1,300 10,000 4,800 61,500 11,300 7,000 3,400 4,000 $123,200 10,000 4,000 $113,400 $113,400 $123,200 Directions Situatton Journal Entriee Financiat Statements Explanation Resources Journalize the annual adjusting entries that were made. (Omit explanations.) Explanaton Resourcen Directions Btuation Financial Statemonte Journal Entrles Prepare an income statement for the year ending December 31, 2012, and an unclassified balance sheet at December 31. Explanation Rosourcos Directions Situation Journal Entrios Financlal Statoments Describe the remaining steps in the accounting cycle to be completed by Nalezny for 2012.